Technologies

A New Bill Aims to Ban Both Adult Content Online and VPN Use. Could It Work?

Michigan representatives just proposed a bill to ban many types of internet content, as well as VPNs that could be used to circumvent it. Here’s what we know.

On Sept. 11, Michigan representatives proposed an internet content ban bill unlike any of the others we’ve seen: This particularly far-reaching legislation would ban not only many types of online content, but also the ability to legally use any VPN.

The bill, called the Anticorruption of Public Morals Act and advanced by six Republican representatives, would ban a wide variety of adult content online, ranging from ASMR and adult manga to AI content and any depiction of transgender people. It also seeks to ban all use of VPNs, foreign or US-produced.

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VPNs (virtual private networks) are suites of software often used as workarounds to avoid similar bans that have passed in states like Texas, Louisiana and Mississippi, as well as the UK. They can be purchased with subscriptions or downloaded, and are built into some browsers and Wi-Fi routers as well.

But Michigan’s bill would charge internet service providers with detecting and blocking VPN use, as well as banning the sale of VPNs in the state. Associated fines would be up to $500,000.

What the ban could mean for VPNs

Unlike some laws banning access to adult content, this Michigan bill is comprehensive. It applies to all residents of Michigan, adults or children, targets an extensive range of content and includes language that could ban not only VPNs but any method of bypassing internet filters or restrictions.

That could spell trouble for VPN owners and other internet users who leverage these tools to improve their privacy, protect their identities online, prevent ISPs from gathering data about them or increase their device safety when browsing on public Wi-Fi.

Read more: CNET Survey: 47% of Americans Use VPNs for Privacy. That Number Could Rise. Here’s Why

Bills like these could have unintended side effects. John Perrino, senior policy and advocacy expert at the nonprofit Internet Society, mentioned to CNET that adult content laws like this could interfere with what kind of music people can stream, the sexual health forums and articles they can access and even important news involving sexual topics that they may want to read. «Additionally, state age verification laws are difficult for smaller services to comply with, hurting competition and an open internet,» John added.

The Anticorruption of Public Morals Act has not passed the Michigan House of Representatives committee nor been voted on by the Michigan Senate, and it’s not clear how much support the bill currently has beyond the six Republican representatives who have proposed it. As we’ve seen with state legislation in the past, sometimes bills like these can serve as templates for other representatives who may want to propose similar laws in their own states.

Could VPNs still get around bans like these?

That’s a complex question that this bill doesn’t really address. When I asked NordVPN how easy it would be track VPN use, privacy advocate Laura Tyrylyte explained, «From a technical standpoint, ISPs can attempt to distinguish VPN traffic using deep packet inspection, or they can block known VPN IP addresses. However, deploying them effectively requires big investments and ongoing maintenance, making large-scale VPN blocking both costly and complex.»

Also, VPNs have ways around deep packet inspection and other methods. CNET senior editor Moe Long mentioned obfuscation like NordWhisper, a counter to DPI that attempts to make VPN traffic look like normal web traffic so it’s harder to detect.

There are also no-log features offered by many VPNs to guarantee they don’t keep a record of your activity, and no-log audits from third parties like Deloitte that, well, try to guarantee the guarantee. There are even server tricks VPNs can use like RAM-only servers that automatically erase data each time they’re rebooted or shut down.

If you’re seriously concerned about your data privacy, you can look for features like these in a VPN and see if they are right for you. Changes like these, even on the state level, are one reason we pay close attention to how specific VPNs work during our testing, and make sure to recommend the right VPNs for the job, from speedy browsing to privacy while traveling.

Correction, Oct. 9: An earlier version of this story incorrectly stated how RAM-only servers work. RAM-only servers run on volatile memory and are wiped of data when they are rebooted or shut down.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know